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Global Risks Report 2019

Global Risks Report 2019

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  • Prelims bits || Reports & Indices

 Why in News?

  • The Global Risks Report 2019 has been released by the World Economic Forum (WEF).

 About Global Risks Report And Its Significance

  • The Global Risks Report 2019 enlists the threats which the world will face in the future ranging from geopolitical and Geo-economic tensions to environmental degradation and disruptions of the Fourth Industrial Revolution.
  • The report presents the results of the Global Risks Perception Survey conducted by the World Economic Forum.
  • The report explores the interconnectedness of risks,and is intended to raise awareness about the need for a multi-stakeholder approach to the mitigation of global risk.

Top 10 risks by likelihood as per the latest report

  • Extreme weather events.
  • Failure of climate change mitigation and adaptation.
  • Major natural disasters.
  • Massive incident of data fraud/theft.
  • Large scale cyber attacks.
  • Man-made environmental damage and disasters.
  • Large-scale involuntary migration.
  • Major biodiversity loss and ecosystem collapse.
  • Water crises.
  • Asset bubbles in a major economy.

 Top 10 risks by  Impact

  • Weapons of mass destruction
  • Failure of climate-change mitigation and adaptation
  • Extreme weather events
  • Water crises
  • Natural Disaster
  • Biodiversity Ines and ecosystem collapse
  • Cyber-attacks
  • Critical information infrastructure breakdown
  • Man-made environmental disasters
  • Spread of infectious diseases

 Detailed Analysis Of The Report And Key Takeaways

  • Environmental risks dominate the global risks landscape in terms of impact and likelihood for the third year in a row. This includes extreme weather events and failure of climate mitigation and adaptation The report finds that business leaders are more concerned about climate in the long term. This disconnect will need to be tackled.
  • Global risks are intensifying, but our capacity to respond to them is declining. Power is moving towards more nationalist, authoritarian states and they are becoming more inward-looking.
  • Geopolitics and Geo-economic factors, such as uncertainty and nationalism are fuelling risks. Innovation is also outpacing our ability to manage it and there are growing concerns around technology misuse.
  • Shorter-term fears are around geopolitical and cyber threats. For top business leaders, the cyber risk concern is rising globally and is the highest ranked threat. Other concerns also exist, including fiscal crises, unemployment, energy price shocks, national governance failure, interstate conflict and natural disasters.
  • There is a significant financing gap (US$18 trillion) in infrastructure capital – with only US$79 trillion currently planned between now and 2040. This means 20% more financing is needed than we are putting in today. Furthermore, infrastructure needs to be resilient to extreme weather events. Business, with its reliance on public sector infrastructure, will be impacted and need to work with government on solutions.

 Mains Question

  • Time is running out to keep global warming below 1.5°C since pre-industrial era levels. Do you agree? Discuss.
  • Discuss highlights and key facts on the report, risks highlighted by the report.
  • What are the concerns and challenges exposed by the report?
  • What is the need for tactical measures and significance of multi- stakeholder approach?